Mumbai: In the biggest block trade this year, Tata Sons will sell a 1.5 % stake in TCS, worth almost $1.3 billion (Rs 8,500 crore), through the stock exchanges between March 13 and March 15.
On NSE, shares of the company dived 5.90 % to ₹ 2,872.
The proceeds of the share sales will reportedly be used by Tata Sons to pay creditors of its wireless division.
TCS fell 4.84% to Rs 2,904 at 9:46 IST on BSE after media reported that Tata Sons will sell about 1.5% stake in TCS through the stock exchanges between 13 and 15 March 2018. Tata sold Tata Teleservices Ltd.'s mobile-phone operations to Bharti Airtel Ltd. previous year and pledged to pay the unit's obligations.
Since previous year, the conglomerate has been planning to increase its ownership in its largest businesses including Tata Chemicals Ltd. and Tata Steel Ltd.
Tata Sons had 73.5% stake in the software company at the end of December 2017. Last year, it boosted its stake in Tata Motors Ltd., the owner of Jaguar Land Rover.
The block deal is expected to be executed tomorrow and Citigroup Global Markets India and Morgan Stanley India are said to be acting as joint placement agents on the placement.
In addition, the holding company is seeking a $1.5 billion offshore syndicated loan, to pay down expensive debt at its telecommunications unit.
Tata Sons plans to use the money it raises to pay lenders to the company's subsidiary Tata Teleservices and raise stake in some other units, unidentified people told the news outlet.
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